S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico MarketThe Pound Sterling (GBP) outperformed as UK labor market conditions eased and the December PMI signaled firmer private sector growth, while markets fully priced in an upcoming Bank of England rate cut, BBH FX analysts report.
UK unemployment hits highest since Q1 2021
“GBP is outperforming. UK labor market condition continued to ease in October while the UK December PMI points to firmer private sector growth traction. The Bank of England (BOE) remains on track to deliver a rate cut on Thursday (93% priced-in) but the easing path ahead should remain gradual. We expect GBP to continue underperforming on the crosses.”
“The unemployment rate matched consensus at 5.1% (highest since Q1 2021) vs. 5.0% in September and job vacancies have fallen further. This has kept the vacancies-to-unemployment ratio well below its estimated equilibrium level (0.50), indicative of weaker labor demand.”
“Wage growth slowed but remains a key source of underlying inflation pressure given that labor productivity is estimated at -0.2% in 2025. The policy-relevant private sector regular pay fell to the lowest since late 2020 at 3.9% y/y (consensus: 3.8%) vs 4.2% in September. Finally, the composite PMI increased to a 2-month high at 52.1 (consensus: 51.5) vs. 51.2 in November, reflecting an improvement in services and manufacturing activity.”
